About Deferred Compensation

You've probably heard of the different types of retirement plans: 457(b) Deferred Compensation, 401(k), 403(b), 401(a) and 457(b) Deferred Compensation with both traditional and Roth contributions. As a public employee, there are plans created specifically for you.

Nationwide® has worked with public sector employees for more than 30 years, so we know the kinds of questions you may have about your plan. We'll give you the tools and information to help you feel confident about investing for retirement. Keep in mind that investing involves market risk, including possible loss of principal, and there's no guarantee that investment objectives will be achieved.

The Riverside County Deferred Compensation Plan was created to allow County employees like you to put aside money from each paycheck toward retirement. These plans can help bridge the gap between what you have in your pension and Social Security, and how much you’ll need in retirement. The available plans include:

What sets a 457(b) apart from other retirement plans? 457(b)s may offer benefits other retirement plans can’t, like penalty-free withdrawals once you stop working for your public sector employer.

What does tax-deferred mean? Basically, you don’t pay income taxes on your deferred comp plan contributions or earnings until you retire and/or begin to take payments from your account. This may lower your taxable income now and in retirement.

Can I combine retirement accounts? Our Retirement Specialists will work with you to combine, or consolidate your eligible retirement accounts into your deferred comp account. This may make managing your retirement investments a little easier.

Get the help you need

The sooner you enroll, the more you can possibly save. Take a look at the Enrollment Checklist to see what you’ll need to have handy and enroll today!

Enroll in your plan – It’s easy to participate in deferred comp. Contributions are automatically deducted from each paycheck and deposited to your account, so you don’t have to remember to write a check.

Invest your money – You’ll choose funds from the list of investment options available within your plan. Keep in mind, any investment involves risk and there’s no guarantee that any fund will achieve its investment objectives. But, we’re here to help.

Use the My Investment Planner to get a personalized retirement strategy, including recommendations for your retirement income goal, savings rate and portfolio asset mix. You’ll need to enroll first and then set up online access to use this tool.

Receive income – Many public employees retire earlier than those in the private sector, and if that’s the case, you’ll want to invest enough to live in retirement on your terms. Before you begin taking payments, review our Retirement Checklist to make sure you’re ready to transition from saving to spending.

When you’re ready to receive income, these tips will help you do so wisely. Depending on the plan type you’re invested in, there may also be a 10% penalty on distributions prior to age 59½.

2. Every little bit helps

Even investing a little bit of money can really add up over time – it's just important to get started! And if you continue to bump up contributions on a regular basis, the overall impact to your paycheck may not seem too painful. Consider putting raises or bonuses into deferred comp – it's an easy way to invest a little more.

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Take a look at how an investment could potentially grow over time.

Growth Period

Ending Balance

Deferral Per Pay

Paycheck Impact

Annual Pay Reduction

Accumulation 10 Years

Accumulation 20 Years

Accumulation 30 Years

$25

$18.75

$488

$9,304

$27,605

$63,607

$50

$37.50

$975

$18,607

$55,210

$127,214

$75

$56.25

$1,463

$27,911

$82,815

$190,821

$100

$75.00

$1,950

$37,214

$110,420

$254,428

$125

$93.75

$2,438

$46,518

$138,025

$318,035

$150

$112.50

$2,925

$55,821

$165,631

$381,642

$175

$131.25

$3,413

$65,125

$193,236

$445,249

$200

$150.00

$3,900

$74,429

$220,841

$508,856

$225

$168.75

$4,388

$83,732

$248,446

$572,463

$250

$187.50

$4,875

$93,036

$276,051

$636,070

$275

$206.25

$5,363

$102,339

$303,656

$699,676

$300

$225.00

$5,850

$111,643

$331,261

$763,283

$350

$262.50

$6,825

$130,250

$386,471

$890,497

$400

$300.00

$7,800

$148,857

$441,681

$1,017,711

$450

$337.50

$8,775

$167,464

$496,892

$1,144,925

$500

$375.00

$9,750

$186,071

$552,102

$1,272,139

$550

$412.50

$10,725

$204,678

$607,312

$1,399,353

$600

$450.00

$11,700

$223,286

$662,522

$1,526,567

$634

$475.50

$12,363

$235,938

$700,065

$1,613,072

Chart assumptions: Biweekly deferrals, 25% tax rate for paycheck impact, 7% annual rate of return. This hypothetical illustration is not intended to predict or project investment results. It does not assume taxes, fees or account withdrawals during accumulation; if it did, results would be lower. This chart is not intended to project the performance of your deferred compensation account. Investments involve market risk, including the possible loss of principal. Actual investment results will vary depending on your investment and market experience. Income stream durations and amounts are not guaranteed.

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3. This plan is made for you

Unlike other retirement plans, a 457(b) deferred compensation plan takes into account that you may retire sooner than workers in the private sector. Generally, you don’t have to worry about paying a penalty for retiring early or beginning to take income from the plan before age 59½.

4. You'll get service you can count on

Nationwide is ready and willing to answer your questions. We've been helping public sector employees save for retirement for more than 30 years and our Retirement Specialists have helped educate thousands of employees about investing through their retirement plans. Feel free to call today — we don't charge a fee to work with a Retirement Specialist.

As a participant in your deferred compensation plan, you’ll have access to a wide range of investment options. Your investment options were selected by your plan and can help meet your retirement planning needs. Keep in mind that investing involves market risk, including possible loss of principal. As you get started in the plan, we’ll help you understand market risk and strategies that may help you deal with it.

Understand your options

The investment choices available to you fall into five major asset classes:

Risk-based funds

Time-based fund

Stock fund

Bond funds

Short-term investments

There are four classes of stock funds we offer:

International stock

Small-cap stock

Mid-cap stock

Large-cap stock

Get the help you need

Talk to a Retirement Specialist about your investment options or learn more about how to choose funds. Information provided by Retirement Specialists is for educational purposes only and is not intended as investment advice.

Retirement Specialists provide information for educational purposes only. This information is not meant to be used as investment advice. Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA.